Community banks that don’t lend very often are supposed to get cheap capital with the Small business Jobs and Credit Act. Unemployment creates a kind of pressure on the Obama administration to make more jobs available. The Small business Jobs and Credit Act was conceived for that purpose. However, partisan bickering prevented Congress from doing anything about the bill before it went on its August trip. Business credit and tax relief has to wait until September now to be looked at by any politicians. September is when the Small business Association Arc Loan Program will be expiring.
Bill promotes small business lending and tax relief
The bill is called the Small business Jobs Act also, and will allow $ 30 billion to be put into a lending fund. Banks with less than $ 10 billion in assets tend to be the ones lending to small business, reports CNNMoney.com. Businesses should be able to get some more money with capital going into community banks. The bill would also provide $ 12 billion in small businesses tax relief between 2010 and 2020. It increases SBA loan limits and extends loan incentives through the end of the year. More companies are encouraged with the tax cuts. $ 1.5 billion in grants could be given to numerous of the state governments with no money left to be seen.
Politicians make small business credit a game
The House recessed July 30 after fighting about procedures of the Small business Jobs Act. Bizjournals.com reports that action on the bill was delayed within the Senate because of partisan maneuvering by Republicans over amendments unrelated to boosting small company credit. Republicans used their “another bank bailout” talking point to oppose the $ 30 billion small company lending fund. When considered a separate amendment, 60 votes were given for filibuster-proof with two republicans helping. But Republicans were united in blocking the Senate from moving forward on the entire bill. Evidently Democrats were stopping them from adding more amendments to the bill.
Program for Interest-free SBA Arc loans expires
Help is accessible to small businesses for just a little while longer. While waiting for a decision from Congress, check out SBA Arc loans. As outlined by Helium, 100 percent guaranteed, interest-free loans up to $ 35,000 are accessible to companies that are already up and running. SBA Arc Loans are only accessible to businesses that can prove at least one year of profitability has happened within the last two years of business. Five years are allowed to pay back the loan. In six months, the whole loan can be given out. The SBA Arc loan program ends at the end of September.
Discover more information on this subject
CNN Money
money.cnn.com/2010/08/06/smallbusiness/small_business_bill_stalemate/index.htm
Bizjournals
denver.bizjournals.com/denver/stories/2010/08/02/daily78.html
Helium
helium.com/items/1915352-sab-arc-loan-program
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